Mumbai: HDFC Bank has reported a net profit of Rs 16,373 crore for the December quarter, an increase of 34% over Rs 12,259 crore in the year-ago period. Despite the surge in profits, international markets appeared to be disappointed by the business performance.
HDFC Bank’s American depository receipt (listed in the US) was down 5% late on Tuesday. Analysts said that sequential deposit growth of just 1.9% amid a nearly 5% rise in loans is seen to be putting pressure on liquidity.The profit was driven by a 25.8% increase in net interest income to Rs 39,610 crore from Rs 31,490 crore in the year-ago period. The bank’s CFO, Srinivasan Vaidyanathan, said that the bank reduced Rs 11,800 crore of its high-cost deposits, which helped improve interest margins for the lender.
Vaidyanathan said that the bank would move to file the documents with Sebi for an IPO of its NBFC subsidiary HDB Financial Services. RBI norms require NBFCs that are classified as part of the ‘upper layer’ to be listed on the stock exchanges in two years. “HDB listing requirement is for September 2025. We expect to commence activity on that so we have the flexibility to be in the market at the right time. As soon as the year is over, we will file the papers with Sebi to get approval, and we want to have as much flexibility as possible from a market timing,” he said.
HDFC Bank’s American depository receipt (listed in the US) was down 5% late on Tuesday. Analysts said that sequential deposit growth of just 1.9% amid a nearly 5% rise in loans is seen to be putting pressure on liquidity.The profit was driven by a 25.8% increase in net interest income to Rs 39,610 crore from Rs 31,490 crore in the year-ago period. The bank’s CFO, Srinivasan Vaidyanathan, said that the bank reduced Rs 11,800 crore of its high-cost deposits, which helped improve interest margins for the lender.
Vaidyanathan said that the bank would move to file the documents with Sebi for an IPO of its NBFC subsidiary HDB Financial Services. RBI norms require NBFCs that are classified as part of the ‘upper layer’ to be listed on the stock exchanges in two years. “HDB listing requirement is for September 2025. We expect to commence activity on that so we have the flexibility to be in the market at the right time. As soon as the year is over, we will file the papers with Sebi to get approval, and we want to have as much flexibility as possible from a market timing,” he said.
